Study Of The Optimal Allocation Of Rare Earth Of China

Rare earth is China’s one of the advantage strategical mineral resources, widelyused in many fields of the national economy, especially in the high-tech industries andmilitary field. China’s rare earth resources hold the first place in term of their reserves,productions and exports in the world; nevertheless, the advantage of resources has nottransformed to the economic advantage, China’s rare earth industry has manyproblems, and the status of rare earth powers also has not yet been established. Howto realize the optimal allocation of the rare earth resources, use valuable resourcesefficiently, and balance the economic benefit and social benefit of the rare earthindustry, are the main content of this paper.This study based on the general situation of China’s rare earth resources anddevelopment of rare earth industry. Through deep analysis of the current condition ofrare earth resources, advantages and disadvantages existing in rare earth industry inour country, we have a clear and sober understanding.In order to optimize resource configuration scientifically and rationality, weestablished a rare earth resources optimization configuration assessment index system,by making reference to the thought and method of the evaluation index system ofmineral resources. In this paper, analytic hierarchy process (AHP) was used tocalculate and allocate the weights of the indexes, to guarantee the rationality andscientificalness of the index evaluation. Then, we use this index system to evaluateindicators in the main light and heavy rare earth regions.The index evaluation result of optimal allocation can directly reflect the regionaladvantages and disadvantages of rare earth resources comprehensive development,and help to establish the orientation of rare earth industry development in differentregions. According to the evaluation result, this paper lists Inner Mongolia, SichuanProvince, and Shandong Province as the priority development areas. Under thecircumstance of oversupply, we should reverse the imbalance situation betweensupply and demand, by eliminating backward production capacity, cleaning up themining rights, setting up admittance requirements strictly, etc. Then, productioncapacity should be adjusted gradually, according to the situation of economicdevelopment and demand. To realize the sustainable development of rare earthindustry, it’s also need to take advantage of resources abroad. Heavy rare earthresource, for its less reserve and more demand, is becoming more scarcer, so itrequires development and configuration more carefully. We list Jiangxi Province,Fujian Province and Guangdong Provice as the priority development areas, and makeGuangxi Zhuang Aotonomous Region, Yunnan Province and Hunan Province as thestrategic reserve areas, according to the evaluation result. The main goal of allocationof heavy rare earth is meeting domestic demand, so the exports of primary productsdo not be encouraged. The development strategy of heavy rare earth allocation isfocusing on the exploration, protection and reservation.